HIRE Act of 2021

I 117TH CONGRESS 1ST SESSION H. R. 3449 To amend the Internal Revenue Code of 1986 to make certain adjustments to the work opportunity credit to modernize the credit and make it more effective as a hiring incentive, and for other purposes. IN THE HOUSE OF REPRESENTATIVES MAY 20, 2021 Mr. SUOZZI (for himself, Mr. HORSFORD, Mr. BEYER, Ms. MOORE of Wis- consin, and Mr. SCHNEIDER) introduced the following bill; which was re- ferred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to make certain adjustments to the work opportunity credit to modernize the credit and make it more effective as a hiring incentive, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Hiring Incentive to 4 Return Employment Act of 2021’’ or the ‘‘HIRE Act of 5 2021’’. 6 VerDate Sep 11 2014 05:34 Jun 22, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H3449.IH H3449 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 3449 IH SEC. 2. EXTENSION OF WORK OPPORTUNITY CREDIT DUR- 1 ING COVID–19 RECOVERY PERIOD. 2 (a) IN GENERAL.—Section 51 of the Internal Rev- 3 enue Code of 1986 is amended by adding at the end the 4 following new subsection: 5 ‘‘(l) ADJUSTMENT TO CREDIT DURING COVID–19 6 RECOVERY PERIOD.—In the case of individuals hired after 7 the date of the enactment of this subsection in a taxable 8 year beginning before the date that is 2 years after such 9 date— 10 ‘‘(1) INCREASED AMOUNT OF CREDIT.—Sub- 11 section (a) shall be applied by substituting ‘50 per- 12 cent’ for ‘40 percent’. 13 ‘‘(2) AVAILABILITY OF CREDIT IN SECOND 14 YEAR OF EMPLOYMENT.— 15 ‘‘(A) IN GENERAL.—Subsection (a) shall 16 be applied by inserting ‘or qualified second-year 17 wages’ after ‘wages’. 18 ‘‘(B) QUALIFIED SECOND-YEAR WAGES.— 19 For the purposes of this paragraph, the term 20 ‘qualified second-year wages’ means qualified 21 wages which are attributable to service rendered 22 during the 1-year period beginning on the day 23 after the last day of the 1-year period with re- 24 spect to the recipient determined under sub- 25 section (b)(2). 26 VerDate Sep 11 2014 05:34 Jun 22, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3449.IH H3449 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 3449 IH ‘‘(3) INCREASE IN LIMITATION ON WAGES 1 TAKEN INTO ACCOUNT.—Subsection (b)(3) shall be 2 applied by substituting ‘$10,000’ for ‘$6,000’. 3 ‘‘(4) ELIGIBILITY OF REHIRES.— 4 ‘‘(A) IN GENERAL.—Subsection (i)(2) shall 5 not apply. 6 ‘‘(B) REGULATIONS.—The Secretary shall 7 issue such regulations as the Secretary deter- 8 mines appropriate to ensure a reasonable appli- 9 cation of subparagraph (A), including prohib- 10 iting attempts to claim the benefit of this sec- 11 tion through the termination and rehiring of an 12 employee.’’. 13 (b) EFFECTIVE DATE.—The amendment made by 14 this section shall apply to taxable years ending after the 15 date of enactment of this Act. 16 Æ VerDate Sep 11 2014 05:34 Jun 22, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\H3449.IH H3449 kjohnson on DSK79L0C42PROD with BILLS